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SUMMARY OF CaIHFA EARLY LOAN PAYMENT PROGRAM <br /> Loan Amount Issuer Interest Program Total Due <br /> Discount <br /> Original HELP Loan $1,500,000 CaIHFA _ $431,875 $0 $1,931,875 <br /> CAIHFA Early Payment $1,500,000 CaIHFA $250,000 $90,000 $1,650,000 <br /> Program 1 _ <br /> CaIHFA Loan Payments <br /> Payee Amount Paid <br /> BLP $1,200,000 <br /> City $ 450,000 <br /> Total Paid $1,650,000 <br /> DISCUSSION <br /> In general, this is straight forward financial transaction that allows both the City and BLP <br /> to take advantage of CaIHFA's early loan payment program. As indicated above, BLP is <br /> required to repay the City the $450,000 that the City is contributing to the loan payment. <br /> While staff could have recommended that its $450,000 loan be made with interest, this <br /> would generally negate the benefits of the early payoff program. Further, the City has <br /> always viewed this project as a cooperative effort with both parties focused on the long <br /> term financial health of the development. If the City Council elects to require an interest <br /> payment, staff recommends it be tied to the State's Local Agency Investment Fund <br /> which is currently at approximately .50 %. <br /> Submitted by: Fiscal Review: Approv by: <br /> Steven Bocian Emily agner Nelson Fialho <br /> Assistant City Manager Director of Finance City Manager <br /> Attachment <br /> 1. Amended and Restated HELP Promissory Note <br /> 2. Previously Approved HELP Loan Agreement <br /> Page 3 of 3 <br />